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Localization, urbanization and globalization: Dynamic manufacturing specialization in the YRD mega-city conglomeration
Abstract This paper proposes a theoretical framework to understand the change of manufacturing specialization by investigating the effects of localization, urbanization and globalization. Using the data of the 2004, 2008 and 2013 Enterprise Economic Census of China, we first describe the spatial characteristics of manufacturing specialization at the county level in the YRD territorial mega-city conglomeration. The effects of localization, urbanization and globalization are then modelled using random effect panel regression with GLS estimation. The empirical findings indicate that manufacturing specialization shows a significant upward trend from 2004 to 2008 and is then replaced with a decrease trend from 2008 to 2013. The peripheral urban areas have a high specialization index, while the rest of urban conglomeration is associated with low manufacturing specialization. Localization factors such as markets and land price have a positive effect on manufacturing specialization, but the effect of labor wage is inconclusive, and government industrialization initiatives discourage manufacturing specialization. The factors, such as level of urbanization, city size all tend to be negatively correlated with manufacturing specialization. The impact of globalization on manufacturing specialization varies depending on the specific measures of globalization, because market enlargement effect and home market effect of globalization both exist in the YRD.
Highlights We demonstrate a dynamic pattern of manufacturing specialization in the YRD territorial mega-city conglomeration. Manufacturing specialization is a product of processes that can be theorized as localization, urbanization and globalization. We unravel how localization, urbanization and globalization have shaped manufacturing specialization in the YRD.
Localization, urbanization and globalization: Dynamic manufacturing specialization in the YRD mega-city conglomeration
Abstract This paper proposes a theoretical framework to understand the change of manufacturing specialization by investigating the effects of localization, urbanization and globalization. Using the data of the 2004, 2008 and 2013 Enterprise Economic Census of China, we first describe the spatial characteristics of manufacturing specialization at the county level in the YRD territorial mega-city conglomeration. The effects of localization, urbanization and globalization are then modelled using random effect panel regression with GLS estimation. The empirical findings indicate that manufacturing specialization shows a significant upward trend from 2004 to 2008 and is then replaced with a decrease trend from 2008 to 2013. The peripheral urban areas have a high specialization index, while the rest of urban conglomeration is associated with low manufacturing specialization. Localization factors such as markets and land price have a positive effect on manufacturing specialization, but the effect of labor wage is inconclusive, and government industrialization initiatives discourage manufacturing specialization. The factors, such as level of urbanization, city size all tend to be negatively correlated with manufacturing specialization. The impact of globalization on manufacturing specialization varies depending on the specific measures of globalization, because market enlargement effect and home market effect of globalization both exist in the YRD.
Highlights We demonstrate a dynamic pattern of manufacturing specialization in the YRD territorial mega-city conglomeration. Manufacturing specialization is a product of processes that can be theorized as localization, urbanization and globalization. We unravel how localization, urbanization and globalization have shaped manufacturing specialization in the YRD.
Localization, urbanization and globalization: Dynamic manufacturing specialization in the YRD mega-city conglomeration
Kang, Jiangjiang (author) / Xu, Wei (author) / Yu, Li (author) / Ning, Yueming (author)
Cities ; 99
2020-02-02
Article (Journal)
Electronic Resource
English
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